Restart Canadian Business Finance Success With An Asset Based Line OF Credit ! Turbo charge cash flow Via ABL Revolving Lines

Don’t Take Chances By Not Investigating ABL Credit Lines




Information on the Canadian asset based line of credit and the ABL revolving finance facility .How these business lines leverage your working capital and cash flow to the maximum




The ‘times they are a changing; Bob Dylan we're thinking probably wasn’t considering an asset based line of credit finance solution when he wrote his famous song .

Somehow though those words signify a ' restart ' and that’s what Canadian business owners get when they consider asset based finance via revolving credit facilities as a solution for cash flow and working capital needs .

So how does something that seemingly seems the same actually benefit your company so significantly? It's partly related to the external environment out there: traditional forms of business financing in Canada are challenging to say the least, venture capital seems somewhat non existent, and private equity deals take forever to complete if you can find a suitable partner.

Enter the asset based line of credit finance solution! ABL is the acronym for this these revolving lines of credit. They are multi tasking to say the least. Hers some of the things that ABL lines can do : pay out secured existing creditors who have term loans or business lines of credit in place with your firm, eliminate CRA arrears, ( if any ) on the initial advance, and , quite importantly, help you get caught up with valued supplier and vendor related payables.

Oh, and by the way, if you had limited or perhaps no inventory financing in place before as a part of your business line of credit... well, you do now!

The Canadian asset based line of credit marketplace is significantly different from that of the U.S. First of all, we're a smaller country business wise, no surprise there. So there are fewer true ABL type lenders to meet your overall needs. We also logically think that the limited number of players in this market might be one of the reasons you simply have never heard of this solution?!

We keep talking about differences when we compare the asset based loan facility to traditional commercial banking facilities available from our chartered banking system here in Canada. Those differences are quite frankly what make these revolving lines of credit so great.

First of all there is a lot of emphasis on collateral and assets, and less or extremely limited emphasis on outside collateral, personal guarantees, and ratios and covenants.

Additionally, it’s apparently not a perfect world out there, and your firm may be experiencing fluctuations in sales, profits, and balance sheet strength. The reality is that ABL finance is still the solution for your firm if you are in any of the above scenarios.

ABL finance is specialized lending. Firms that offer this service tend to be seasoned companies with significant experience in loaning against your assets. That’s of course not to say the banks are not, but it’s a case of almost micro managing your assets with you, which gives you more borrowing power. These capabilities translate into more working capital and cash flow for your firm, as you benefit from higher advance rates on receivables, inventory margining that actually finally makes sense, and access to unlimited business credit as long as your business is growing .

Investigate ABL. Speak to a trusted, credible and experienced Canadian business financing advisor who can help you determine whether your firm is due for a ' restart ' in Canadian business financing.





Stan Prokop - founder of 7 Park Avenue Financial -



http://www.7parkavenuefinancial.com



Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :




http://www.7parkavenuefinancial.com/asset_based_line_of_credit_finance_revolving_lines.html

Why and Asset based line of Credit will simplify Your Business credit Needs for cash flow finance

Are you on board or close to falling off the track? We're of course talking about Canada's newest entrant into business credit financing, commonly called an ' asset based line of credit '.

Let's talk about what this type of business financing is, why is it different from what you may have come to expect, and what are the benefits for your business when you consider this type of financing.

It is all about one word - ' assets' - if you have them, you qualify, if you don’t have them, well, lets not go there...

An asset based line of credit loan in fact is not a ' loan' per se, that’s where we spend a lot of time talking to clients about what this type of financing really is - because they view it as borrowing and adding debt to the balance sheet.

In reality the asset based financing we are talking about is simply a revolving line of credit that is tied very specifically to the value of your assets - the most common asset categories under this line of credit are inventory and receivables, the other assets that can be thrown into the mix are unencumbered equipment, tax credits, real estate, etc . And again, at the risk of over repeating, we are not talking about loans, we are talking mainly about borrowing on a daily basis, as you need it, and using these assets as collateral .

We have seen countless examples of how this type of Canadian business financing has increased a company's borrowing ability by 100-200% or more. How can that possibly be, ask clients. It is simply because the borrowing you are used to, if you have been able to achieve it, is based on rations and covenants and credit limits, and your ability to achieve forecasts for institutions such as the Chartered banks. When you aren’t able to achieve that we will call traditional cash flow financing in Canada via a business line of credit the asset based facility is a solid solution.

Clients invariably ask ' How do we get approved - do we qualify?' - We have already talked about your qualifications- got assets? You're approved. That’s a simplistic answer, so let’s explain in more detail. Typically in Canada these types of financings work best for facilities in the 250k+ range. Facilities smaller than that tend to be receivable based financings only. In general the asset based lender prefers a higher ratio of receivables to inventory, but that is not always the case, depending on your industry and your asset categories.

Most Canadian business owners and financial mangers know the general cost of bank financing - asset based financing is more expensive, but offers you unlimited liquidity without the shackles of ratios, covenants, outside collateral, emphasis on personal guarantees. Many of the largest corporations in Canada use this type of financing, but it also covers what we call ' story credits ‘. These are cases where your firm is in a turnaround, perhaps it has new contracts, perhaps you are coming off a less than satisfactory year, etc. There are a multitude of reasons for choosing this type of financing.

So if cash flow finance is your challenge and asset based line of credit is your solution. Speak to a trusted, credible and experience Canadian business financing advisor who can demonstrate to you the benefits of this innovative form of a new breed of cash flow finance for your ongoing growth needs.
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Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/asset_based_line_credit_business_credit_cash_flow.html